First Time Home Buyers

Today, more than ever, is a great time to purchase a home. Especially for the First Time Home Buyer. Housing prices have dropped considerably which makes acquiring a home much more affordable. Not only affordable, but people can still buy a home today with No money or very little money out of pocket. Even during the current "credit crisis", people can get 100% financing at affordable rates and terms. Let's look at some of these programs.

Fannie Mae's "My Community" program: ( This is my personal favorite.)

• 100% Financing
• Low 30 year fixed interest rates (currently in the high 6% range)
  Interest Only and 40 year amortization may be possible
• The Seller can contribute up to 6% of the selling price toward the buyers closing costs.
• Allows for up to 65% debt-to-income ratios for qualifying applicants
• Reduced Mortgage Insurance
• No Reserves required ( but having reserves strengthen the buyers file )
• Low credit scores down to a 580 are eligible
• Collections don't need to be paid provided they don't affect title
• Does have Income Restriction, but many areas of the US are exempt
• No Pre-Payment Penalties
• Maximum loan amount of $417,000.00
• A full 2 years job history not required
• No verification of previous housing history required
• Can NOT currently own any additional real estate

FHA Programs:

• 100% financing with Down Payment Assistance (easy to qualify for)
• 97% Financing without down payment assistance
• Seller is allowed to contribute 6% of purchase price toward buyers closing costs
• Exceptionally low interest rates fixed for 30 years
• Reduced Mortgage Insurance
• No Pre-Payment Penalty
• Can be used to buy a home for a son or daughter going away to college
• No income restrictions
• Maximum loan amount do apply depending on geographical area
• Up to 43% debt-to-income allowed, 31% debt-to-income on housing alone
• Able to refinance their current FHA into a streamline FHA loan to lower the interest rate
• No reserves required
• No previous housing history required (living with parents)
• Can own other real estate provided the mortgages on the other property is not FHA ( kiddie condos excluded )

Freddie Mac - Home Possible:

• 100% financing and up to 105% Financing
• Credit score down to 575
• Extremely low interest rates
• Reduced mortgage Insurance
• Seller can contribute up to 3% of the purchase price toward the buyers closing costs
• Credit Scores down to a 620
• Debt-to-income ratio up to 43%
• No Reserves Required

These are just a few of the more popular programs that currently exist to help first time home buyers. If you know of anyone who is even vaguely thinking of buying a home, tell them to consult with a mortgage professional and a realtor about the possibilities of home ownership. In many instances, they can own a home for the same amount of money as renting.

Need assistance in being Pre-Qualified, curious about how much home you can afford,  give us a call. We are available 7 days a week 9am to 9pm and would love assisting you in purchasing your first home.

The Mortgage Professionals
Professional Credit Consulting & Repair
....Domestic & International Mortgage Solutions...
http://www.themortgageprofessionals.biz/
Ph: 239-482-6866